Having a House Built

anon50325502 · March 9, 2015, 5:27pm

[quote]thehebrewhero wrote:
While having a house built can sound like a dream come true it can be a stressful nightmare. Having been there done that and know many that have here is some real solid advice.
Find a house thats 80% of what you want. Buy it as cheap as possible and make the modifications over time. Or if budget allows asap. This will mean less drawbacks in construction & you can skip on a slew of permits if you want. Also less fighting with spouse and contractors. Good luck ;)[/quote]

Thanks, but no. I’ve already addressed this earlier in the thread and it isn’t really feasible for our situation, which is somewhat unique.

I appreciate the input though.

pat · March 9, 2015, 7:26pm

[quote]dmaddox wrote:
I would love to help, but I have no clue where to start, other than talking to a realtor that specializes in land. Use the realtor for the land purchase. Then find a builder that you like by asking friends, or even people in the area you are looking for land.[/quote]

D! How are you man?

pat · March 9, 2015, 7:28pm

[quote]usmccds423 wrote:
So, long story short, for medical reasons my wife and I are considering having a house built with an attached in-law apartment/suite. Her parents will be footing a sizable portion of the bill with the understanding that the house is ours (basically my wife’s inheritance) and we will take care of all house related issues.

That said, I have no idea where to start. We know a realtor whom I am going to contact if and when we decide to do this to find the land. My minimum requirement is 3 acres. Ideally, I’d like 5+.

How do you go about finding a builder? Should I just look in the yellow pages or online? What about testing for well water and things like that? What about estimating the cost? Does anyone know of an online cost calculator or is there kind of standard guide? I realize the particulars will change the price, I’m looking for a general idea. I have a number in mind that we’d like to stay near, I know basically what her parents can put in, and what we can take a loan out for.

Any thoughts or information is welcome. Thanks in advance.

I know inevitably someone is going to say not to do it. Believe me, we’ve talked it through and it’s the best option the family has so, thanks for the advise, but at this point it’s more a matter of time than an if situation.
[/quote]

Oh Lord… My only advice is to stock up on Xanax and Tylenol. You’re gonna need it.

I would say sign up for Angie’s List. Seems to work well for a lot of people.

anon50325502 · March 9, 2015, 7:28pm

[quote]pat wrote:

[quote]dmaddox wrote:
I would love to help, but I have no clue where to start, other than talking to a realtor that specializes in land. Use the realtor for the land purchase. Then find a builder that you like by asking friends, or even people in the area you are looking for land.[/quote]

D! How are you man?[/quote]

I don’t think he graces us with his presence anymore…

pat · March 9, 2015, 7:29pm

[quote]usmccds423 wrote:

[quote]pat wrote:

[quote]dmaddox wrote:
I would love to help, but I have no clue where to start, other than talking to a realtor that specializes in land. Use the realtor for the land purchase. Then find a builder that you like by asking friends, or even people in the area you are looking for land.[/quote]

D! How are you man?[/quote]

I don’t think he graces us with his presence anymore…[/quote]

anon50325502 · March 9, 2015, 7:34pm

[quote]pat wrote:

[quote]usmccds423 wrote:
So, long story short, for medical reasons my wife and I are considering having a house built with an attached in-law apartment/suite. Her parents will be footing a sizable portion of the bill with the understanding that the house is ours (basically my wife’s inheritance) and we will take care of all house related issues.

That said, I have no idea where to start. We know a realtor whom I am going to contact if and when we decide to do this to find the land. My minimum requirement is 3 acres. Ideally, I’d like 5+.

How do you go about finding a builder? Should I just look in the yellow pages or online? What about testing for well water and things like that? What about estimating the cost? Does anyone know of an online cost calculator or is there kind of standard guide? I realize the particulars will change the price, I’m looking for a general idea. I have a number in mind that we’d like to stay near, I know basically what her parents can put in, and what we can take a loan out for.

Any thoughts or information is welcome. Thanks in advance.

I know inevitably someone is going to say not to do it. Believe me, we’ve talked it through and it’s the best option the family has so, thanks for the advise, but at this point it’s more a matter of time than an if situation.
[/quote]

Oh Lord… My only advice is to stock up on Xanax and Tylenol. You’re gonna need it.
[/quote]

Lol, ya… It’s been a long process already and we haven’t really even started.

Some cliff notes:

We are now looking at a lot in MD. We will hopefully be writing a contract pending a feasibility study in the next week or two.

We’re working with a bank on the terms of the construction to perm loan. That is where we are currently stuck. Unfortunately it looks like they have us sorta by the balls. They want to charge us 1.75 point on an ARM loan that will immediately be refinancing (at a cost to us) to a fixed 30 year. I think it’s bullshit, but only a handful of banks seem to offer 2-unit construction to perm loans even when you put about 50% down.

The plans have been drawn. The only common areas are the driveway and deck. We will have a 3 car garage (2 for us 1 for them) that is open (so basically a 3 car garage) No other living space is shared (The land will technically be ours, but it is “shared” I suppose).

I think that’s it. Permits have be researched and we should be good to go once the paper work with the bank is filed.

My father-in-laws house is going up for sale April 1st. Ours May or June 1st.

pat · March 9, 2015, 8:07pm

[quote]usmccds423 wrote:

[quote]pat wrote:

[quote]usmccds423 wrote:
So, long story short, for medical reasons my wife and I are considering having a house built with an attached in-law apartment/suite. Her parents will be footing a sizable portion of the bill with the understanding that the house is ours (basically my wife’s inheritance) and we will take care of all house related issues.

That said, I have no idea where to start. We know a realtor whom I am going to contact if and when we decide to do this to find the land. My minimum requirement is 3 acres. Ideally, I’d like 5+.

How do you go about finding a builder? Should I just look in the yellow pages or online? What about testing for well water and things like that? What about estimating the cost? Does anyone know of an online cost calculator or is there kind of standard guide? I realize the particulars will change the price, I’m looking for a general idea. I have a number in mind that we’d like to stay near, I know basically what her parents can put in, and what we can take a loan out for.

Any thoughts or information is welcome. Thanks in advance.

I know inevitably someone is going to say not to do it. Believe me, we’ve talked it through and it’s the best option the family has so, thanks for the advise, but at this point it’s more a matter of time than an if situation.
[/quote]

Oh Lord… My only advice is to stock up on Xanax and Tylenol. You’re gonna need it.
[/quote]

Lol, ya… It’s been a long process already and we haven’t really even started.

Some cliff notes:

We are now looking at a lot in MD. We will hopefully be writing a contract pending a feasibility study in the next week or two.

We’re working with a bank on the terms of the construction to perm loan. That is where we are currently stuck. Unfortunately it looks like they have us sorta by the balls. They want to charge us 1.75 point on an ARM loan that will immediately be refinancing (at a cost to us) to a fixed 30 year. I think it’s bullshit, but only a handful of banks seem to offer 2-unit construction to perm loans even when you put about 50% down.

The plans have been drawn. The only common areas are the driveway and deck. We will have a 3 car garage (2 for us 1 for them) that is open (so basically a 3 car garage) No other living space is shared (The land will technically be ours, but it is “shared” I suppose).

I think that’s it. Permits have be researched and we should be good to go once the paper work with the bank is filed.

My father-in-laws house is going up for sale April 1st. Ours May or June 1st. [/quote]

My parents did this in the late 90’s and it was a bonafide nightmare every step of the way. So I wish you good luck. Getting a good builder is tough. The house still has issues even to this day, and it was build quality and some bad design that is the culprit. I feel for anybody who has to go through this.

anon50325502 · March 9, 2015, 8:14pm

Thanks Pat. I really like the builder we picked so far. They did some work on my father-in-laws house and it turned out really nice. We’ll see what happens. Communication has been great and they’ve done a lot of leg work for us and we’ve yet to pay them a dime.

pat · March 9, 2015, 8:31pm

[quote]usmccds423 wrote:
Thanks Pat. I really like the builder we picked so far. They did some work on my father-in-laws house and it turned out really nice. We’ll see what happens. Communication has been great and they’ve done a lot of leg work for us and we’ve yet to pay them a dime. [/quote]

Sounds like you are doing it right. I would be aware of people who demand money upfront without having done a damn thing. Those are the ones that tend to be crooks.

anon50325502 · March 9, 2015, 8:31pm

[quote]pat wrote:

[quote]usmccds423 wrote:
Thanks Pat. I really like the builder we picked so far. They did some work on my father-in-laws house and it turned out really nice. We’ll see what happens. Communication has been great and they’ve done a lot of leg work for us and we’ve yet to pay them a dime. [/quote]

Sounds like you are doing it right. I would be aware of people who demand money upfront without having done a damn thing. Those are the ones that tend to be crooks.[/quote]

Definitely.

thehebrewhero · March 9, 2015, 11:50pm

Yup never give contractors money upfront…just pay them in chunks once they complete designated tasks. However you will/should buy the material needed for the job. When doing a large project like building a house you should consult a realestate attorneys and make sure everything is solid & that your liability is low. I see jack daniels and valium in your future.

Dr_Pangloss · March 10, 2015, 12:03am

Because you’re getting a construction loan, the payment schedule will most likely be determined by the bank. They will release %x when the foundation is poured, another % after the house has been framed and inspected, and another % when completion is near. As the homeowner, it’s kind of nice because you’ve got the bank holding the purse strings.

EmilyQ · March 10, 2015, 10:48am

[quote]pat wrote:

[quote]usmccds423 wrote:

[quote]pat wrote:

[quote]usmccds423 wrote:
So, long story short, for medical reasons my wife and I are considering having a house built with an attached in-law apartment/suite. Her parents will be footing a sizable portion of the bill with the understanding that the house is ours (basically my wife’s inheritance) and we will take care of all house related issues.

That said, I have no idea where to start. We know a realtor whom I am going to contact if and when we decide to do this to find the land. My minimum requirement is 3 acres. Ideally, I’d like 5+.

How do you go about finding a builder? Should I just look in the yellow pages or online? What about testing for well water and things like that? What about estimating the cost? Does anyone know of an online cost calculator or is there kind of standard guide? I realize the particulars will change the price, I’m looking for a general idea. I have a number in mind that we’d like to stay near, I know basically what her parents can put in, and what we can take a loan out for.

Any thoughts or information is welcome. Thanks in advance.

I know inevitably someone is going to say not to do it. Believe me, we’ve talked it through and it’s the best option the family has so, thanks for the advise, but at this point it’s more a matter of time than an if situation.
[/quote]

Oh Lord… My only advice is to stock up on Xanax and Tylenol. You’re gonna need it.
[/quote]

Lol, ya… It’s been a long process already and we haven’t really even started.

Some cliff notes:

We are now looking at a lot in MD. We will hopefully be writing a contract pending a feasibility study in the next week or two.

We’re working with a bank on the terms of the construction to perm loan. That is where we are currently stuck. Unfortunately it looks like they have us sorta by the balls. They want to charge us 1.75 point on an ARM loan that will immediately be refinancing (at a cost to us) to a fixed 30 year. I think it’s bullshit, but only a handful of banks seem to offer 2-unit construction to perm loans even when you put about 50% down.

The plans have been drawn. The only common areas are the driveway and deck. We will have a 3 car garage (2 for us 1 for them) that is open (so basically a 3 car garage) No other living space is shared (The land will technically be ours, but it is “shared” I suppose).

I think that’s it. Permits have be researched and we should be good to go once the paper work with the bank is filed.

My father-in-laws house is going up for sale April 1st. Ours May or June 1st. [/quote]

My parents did this in the late 90’s and it was a bonafide nightmare every step of the way. So I wish you good luck. Getting a good builder is tough. The house still has issues even to this day, and it was build quality and some bad design that is the culprit. I feel for anybody who has to go through this.[/quote]

Whereas with the exception of a few very minor bumps, my build went off beautifully and the house was a delight until relocation forced us to sell. And come to think of it, it sold two weeks after hitting the market.

Enjoy! There’s something to be said for choosing all your cabinet pulls and shelf configurations.

anon50325502 · March 10, 2015, 12:46pm

[quote]Dr. Pangloss wrote:
Because you’re getting a construction loan, the payment schedule will most likely be determined by the bank. They will release %x when the foundation is poured, another % after the house has been framed and inspected, and another % when completion is near. As the homeowner, it’s kind of nice because you’ve got the bank holding the purse strings.[/quote]

Ya I totally agree. It’s interest only during the construction phase too, which is kind of nice since it’ll be based on the what the builders draw not on the total amount.

anon50325502 · March 10, 2015, 12:48pm

[quote]EmilyQ wrote: